United States v. Michael A. Riehl, Appeal of Arthur J. Rinaldi. Appeal of James L. Chick

460 F.2d 454, 1972 U.S. App. LEXIS 9664
CourtCourt of Appeals for the Third Circuit
DecidedMay 9, 1972
Docket71-2133 to 71-2135
StatusPublished
Cited by62 cases

This text of 460 F.2d 454 (United States v. Michael A. Riehl, Appeal of Arthur J. Rinaldi. Appeal of James L. Chick) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Michael A. Riehl, Appeal of Arthur J. Rinaldi. Appeal of James L. Chick, 460 F.2d 454, 1972 U.S. App. LEXIS 9664 (3d Cir. 1972).

Opinion

OPINION OF THE COURT

GIBBONS, Circuit Judge.

This appeal brings before us for the first time the provisions of Title VIII of the Organized Crime Control Act of 1970. 18 U.S.C. §§ 1511, 1955 (1971); Act of October 15, 1970, Pub.L. No. 91-425, Tit. VIII, §§ 802(a), 803(a). 84 Stat. 936-40. Section 1511 prohibits conspiracies to facilitate an illegal gam *456 bling business by means of the obstruction of the enforcement of local laws. 1 Section 1955 prohibits the conducting of an illegal gambling business. 2 Appel *457 lants Riehl, Rinaldi and Chick were charged in Count One of the Indictment with violating § 1955 by operating an illegal intrastate gambling business in the City of Jeannette, Pennsylvania. A second count charged that Riehl, Rinaldi and Chick conspired in violation of § 1511 to obstruct the enforcement of the Pennsylvania anti-gambling laws with intent to facilitate the operation of an illegal gambling business in Jeannette conducted by James L. Chick. A third count charged that Riehl and Rinaldi conspired in violation of § 1511 to ob-. struct the enforcement of the Pennsylvania anti-gambling laws to facilitate the operation of an illegal gambling business in Jeannette conducted by Albert J. Abraham, an unindicted co-conspirator. In a jury trial all were convicted, Riehl and Rinaldi on all three counts and Chick on the first two. Each received a custodial sentence. On appeal all make these contentions:

(1) That Title VIII is not an exercise of congressional power authorized by the commerce clause and is hence unconstitutional.
(2) That Title VIII is an unduly vague criminal statute, and hence is void.
(3) That properly construed Title VIII did not reach the two small local gambling operations here involved because the number of persons established as having been involved in each of these operations was less than the number requisite for the application of §§ 1511 and 1955.
(4) That the Government made improper use, on the conspiracy counts, of the testimony of an informer.

To put these contentions in context one must start with the definition of an “illegal gambling business” which is found in identical terms both in § 1511 and § 1955:

“(1) ‘illegal gambling business’ means a gambling business which-—
(i) is a violation of the law of a State or political subdivision in which it is conducted;
(ii) involves five or more persons who conduct, finance, manage, supervise, direct, or own all or part of such business; and
(iii) has been or remains in substantially continuous operation for a period in excess of thirty days or has a gross revenue of $2,000 in any single day.” 18 U.S.C. §§ 1511(b) and 1955(b).

If the gambling enterprise in question meets all three prerequisites, anyone who “conducts, finances, manages, supervises, directs, or owns all or part” of it commits a substantive violation of § 1955. If the enterprise meets all three prerequisites, conspiracies to obstruct local law enforcement with the intent to facilitate its operation violate § 1511 if:

“(2) one or more of such persons is an official or employee, elected, appointed, or otherwise, of such State or political subdivision; and
(3) one or more of such persons conducts, finances, manages, supervises, *458 directs, or owns all or part of an illegal gambling business.”

The Commerce Clause Contention

Appellants contend that Congress lacked any rational basis for a finding that the intrastate illegal gambling businesses defined in §§ 1511 and 1955 have any effects upon interstate commerce. They urge that by purporting to provide a federal criminal penalty for an entirely local activity, Congress has exceeded the bounds implicit in Article I, § 8, and made explicit by the Tenth Amendment. We do not agree. 3

In Part A of Title VIII Congress made Special Findings:

“Sec. 801. The Congress finds that illegal gambling involves widespread use of, and has an effect upon, interstate commerce and the facilities thereof.”

The House Report on the Organized Crime Control Act of 1970 states:

“The intent of section 1511 and section 1955, below, is not to bring all illegal gambling activity within the control of the Federal Government, but to deal only with illegal gambling activities of major proportions. It is anticipated that cases in which their standards can be met will ordinarily involve business-type gambling operations of considerably greater magnitude than simply meet the minimum definitions. The provisions of this title do not apply to gambling that is sporadic or of insignificant monetary proportions. It is intended to reach only those persons who prey systematically upon our citizens and whose syndicated operations are so continuous and so substantial as to be of national concern, and those corrupt State and local officials who make it possible for them to function.” H.R.Rep.No.91-1549, 91st Cong.2d Sess. (1970); 2 U.S.Code Cong. & Admin.News 1970 at p. 4029 (hereinafter House Report).

Congress reached the conclusion that illegal gambling involves the use of and has an effect upon interstate commerce as a result of various hearings on proposed legislation which ultimately became Title VIII. 4 Illegal gambling has been found by Congress to be in the class of activities which exerts an effect upon interstate commerce. Where the class of activities is regulated and that class is within the reach of federal power, the courts may not excise as trivial individual instances of the class. Perez v. United States, 402 U.S. 146, 154, 91 S.Ct. 1357, 28 L.Ed.2d 686 (1971); Katzenbach v. McClung, 379 U.S. 294, 85 S.Ct. 377, 13 L.Ed.2d 290 (1964); Heart of Atlanta Motel v. United States, 379 U.S. 241, 258, 85 S.Ct. 348, 13 L.Ed.2d 258 (1964); Wickard v. Filburn, 317 U.S. 111, 63 S.Ct. 82, 87 L.Ed. 122 (1942); United States v. Darby, 312 U.S. 100, 61 S.Ct. 451, 85 L.Ed. 609 (1941). Congress has chosen to protect commerce and the instrumentalities of commerce not from all illegal gambling activities but from those it deems of major proportions.

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Bluebook (online)
460 F.2d 454, 1972 U.S. App. LEXIS 9664, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-michael-a-riehl-appeal-of-arthur-j-rinaldi-appeal-of-ca3-1972.